Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?

The five consecutive red candles in the daily time frame chart indicate a sudden turnaround in the Bitcoin(BTC) recovery rally. Furthermore, a gradual rise in volume activity during the downfall validates a genuine reversal. The sustained selling pressure teases the coin price may fall to June low support of $18000.

Key points: 

• The daily-RSI slope nosedived into the oversold territory.
• the BTC price is threatened with a more 5% fall if it shows sustainability at its current level below $20000.
• The intraday trading volume in the Bitcoin is $25.2 Billion, indicating a 1.63% loss.

Source-Tradingview

A 21.3% recovery boost the BTC/USDT pair witnessed last week surged to the $21783 mark. However, the recent tragic news of the renowned venture capital firm-Three Arrows Capital, hitting a margin call on its over-extended long position caused a significant impact on the crypto space.

As a result, the BTC price turned down from the $22000-21783 resistance zone and depreciated 13%. The five consecutive daily-red candles reflect aggressive selling in the market, as it undermines the previous recovery rally. 

Today, the BTC price is down by 5% and offers a decisive breakdown from the $20000 psychological level. Thus, a candle closing below this level would continue the downward spiral to June low support of $18000. 

However, this psychological support aligned with a 0.786 Fibonacci retracement level mounts strong support for coin holders.

If buyers manage to defend it, the replenished bullish momentum has a better chance of breaching the $20000 mark.

Technical Indicator 

RSI indicator: the RSI slope breached the 14-SMA line and entered an oversold territory with today’s price drop, accentuating a high selling pressure in the market.

EMAs: the BTC price trading below the fast-moving 20 EMA among the bearish sequence of crucial EMAs(20, 50, 100, and 200 EMAs) indicates the downtrend is in full throttle.

• Resistance level- $20000 and $22000
• Support level- $18000 and $16000